Examiners Report June 2017 GCE Business 9BS0 02
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Introduction Overall the paper proved to be accessible, with the vast majority of candidates able to attempt every question. Candidates generally could relate to the stimulus material and were able to add relevant additional examples to illustrate their answers, enabling them to be awarded credit for the skill of application. Timing did not appear to be an issue as in most cases every question was answered fully. However, some candidates disadvantaged themselves by writing lengthy answers to certain questions, resulting in insufficient time for question 2(e). There were certain topics that some candidates lacked understanding in, specifically these were the acid test ratio, critical path analysis and capacity utilisation. As always, stronger candidates revealed good subject knowledge and were well prepared in understanding how to structure their answers to the different questions. Specifically they were able to identify selective relevant arguments and develop them fully using the context to illustrate their answers. When required, stronger answers revealed the ability to look at both sides of the argument and provide a fully supported conclusion or recommendation. Less able candidates tended to reveal gaps in subject knowledge and often struggled with calculation questions. They would typically be able to identify relevant arguments, but fail to explain them in sufficient detail. Analysis would be mainly based upon assertion or with gaps in the chain of argument. Often answers would be generic with no reference to the context of the question. Conclusions or recommendations were often not provided or would simply be a summary of previous arguments. Overall the impression of candidates responses to this exam are positive. Generally candidates were well prepared, showed good subject knowledge and understood how to structure their answers to the specific demands of each question. GCE Business 9BS0 02 3
Question 1 (a) The majority of candidates were able to provide good understanding of mission statements and explain a benefit Morrisons could gain from having one. However, a common weakness was that candidates failed to refer to the context in order to gain application marks. 2 marks were allocated for application for this question; most candidates failed to provide two examples from the extract and consequently did not gain full marks. Examiner Comments This response was awarded 2 marks. It showed good understanding of a mission statement and explained a benefit of having one. Unfortunately it failed to make any reference to the context, so marks for application could not be awarded. Examiner Tip Typically 4 mark explain questions contain 2 application marks which can be gained by using 2 relevant examples from the context. 4 GCE Business 9BS0 02
Examiner Comments This response gained full marks. The knowledge mark was awarded for the understanding that a mission statement often includes the values of an organisation. Application marks were awarded for the use of relevant examples from the extract namely part of one team and a vision to focus. The analysis mark was awarded for the explanation of the benefit in the last sentence. GCE Business 9BS0 02 5
Question 1 (b) Most candidates revealed good understanding of the acid test ratio, by correctly calculating both years and stating the difference. Some candidates lost a mark by not stating the difference. A significant number of candidates revealed limited understanding of the acid test ratio or confused it with the current ratio. Examiner Comments This response was awarded zero marks. This was because it failed to deduct the inventory from total current assets for each year. Examiner Tip Although not always required, it is a good idea to write the formula first before completing calculation questions. 6 GCE Business 9BS0 02
Examiner Comments This response was awarded full marks. It stated the correct formula, which was used to calculate the acid test for both years and the difference between them was also worked out. Examiner Tip Always show all calculations, rather than simply stating the answer. GCE Business 9BS0 02 7
Examiner Comments This response gained 3 marks. The formula was stated correctly and the acid test ratio for both years is correct. Unfortunately there has been a calculation error for the difference between the 2 years. 8 GCE Business 9BS0 02
Question 1 (c) This proved to be a challenging question for many candidates. Stronger responses provided a correct definition of a competitive market, followed by explanation of both a positive and negative effect for Morrisons, with consistent use of context. These responses then provided a fully supported conclusion. However many candidates misinterpreted the question by discussing what strategies Morrisons would need to adopt in a competitive market. Although these responses contained some merit, they tended to only gain lower level marks because they had not directly answered the question. GCE Business 9BS0 02 9
Examiner Comments This response was considered to be a Level 2 response and was awarded 4 marks. It identifies 2 effects on Morrisons the need to lower prices and increased spending on promotion, with some reference to the context, but the analysis of each point is mainly based upon assertion. It also only considers the potential negative effects and consequently lacks balance. 10 GCE Business 9BS0 02
Examiner Comments This was considered to be a Level 4 response and was awarded 8 marks. It provides a correct definition of a competitive market, followed by separate paragraphs that discuss relevant effects. Each effect is well explained with use of context. It reveals good exam technique by discussing both the positive and negative implications of each effect as well as an overall conclusion. Although a solid Level 4 response, it could have been improved by greater use of context and a stronger conclusion. GCE Business 9BS0 02 11
Question 1 (d) This question discriminated well in terms of exam technique. Stronger candidates identified selective arguments supporting the view that David Potts was the main cause of Morrisons improved performance. These arguments were well explained with strong chains of argument, fully supported by examples from the context. Selective counter arguments were then provided, which were fully explained and supported. A fully justified conclusion which directly answered the question was also provided. Some candidates provided answers that discussed the advantages and disadvantages of David Potts strategies e.g. closing stores and/or replacing directors. These answers contained merit, but were not awarded Level 4, because they were not wide ranging as external factors had not been considered. Less able responses tended to offer too many arguments, which were often simply lifted from the extracts. These arguments were often poorly explained or based upon assertion. Conclusions were often not provided or simply summarised previous arguments. 12 GCE Business 9BS0 02
Examiner Comments This response was considered to meet the requirements of Level 4 and was awarded 9 marks. Although it does not include a clear understanding of transformational leadership, this response includes 2 valid arguments, both of which are well explained with relevant use of the context. Assessment is balanced and the conclusion is supported by prior analysis. GCE Business 9BS0 02 13
Examiner Tip Assess questions will always require candidates to look at both sides of an argument and write a supported conclusion. 14 GCE Business 9BS0 02
Examiner Comments This response was considered to be Level 2 and awarded 4 marks. It contains valid points supporting David Potts leadership e.g. closing stores and replacing directors, but these are poorly explained or based upon assertion. The counter argument is incorrect and shows misunderstanding of the context. The conclusion was considered to be superficial and not supported by the previous arguments. GCE Business 9BS0 02 15
Question 1 (e) This proved to be a very accessible question. Most candidates were able to provide well explained arguments for both options and made a recommendation. Stronger candidates provided well developed lines of argument with consistent use of context. Evaluation marks were also awarded for candidates who recognised the limitations or disadvantages of each option. The key discriminator for this question was the focus upon which option would be preferred by shareholders. Many candidates did not focus upon this and consequently could not be awarded Level 4 marks. Weaker answers tended to be descriptive, identified too many points and failed to analyse them in sufficient detail. They often failed to make a specific recommendation. In preparing future candidates for 20 mark questions, the key lessons centres need to learn are: Focus upon the exact wording of the question. Quality rather than quantity selective arguments that are well developed will always be rewarded higher than identifying several arguments with limited explanation. Each argument must relate to the context of the business/industry featured, it is important to avoid generic responses. Write concisely and avoid extended answers which often contain too much waffle. Make a justified recommendation that is based upon prior arguments. 16 GCE Business 9BS0 02
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Examiner Comments This response was awarded Level 2, 8 marks. Valid arguments for both options were identified and explained, but often there were missing links in the chain of argument and/or analysis was often based upon assertion. The response also contained evaluative comments regarding the strengths and weaknesses of each option, but the overall conclusion was superficial. Unfortunately, the response never linked each option to shareholders interests. GCE Business 9BS0 02 19
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Examiner Comments This response was considered to be Level 4, 18 marks. Its strength is based upon the fact that the analysis of each option is directly linked to shareholders interests. Each option is discussed with consistent reference to the context and although at times the analysis could have been stronger, arguments were generally well developed. There was evidence of evaluation throughout the response and the conclusion made a direct recommendation regarding which option would be preferred by shareholders, which was supported by the previous arguments. Examiner Tip It is not necessary to write lengthy answers to 20 mark questions. The space provided in the answer booklet should be sufficient. Selective points that are well explained with consistent use of context are a key element of a good response. GCE Business 9BS0 02 21
Question 2 (a) Candidates who understood critical path analysis usually gained full marks. However there were many examples of candidates who showed either limited or no understanding of this topic. Examiner Comments Correct calculation of the EST s and LFT s for each node plus correct identification of the critical path diagrammatically. Consequently there was no need to state the activities that were on the critical path. Full marks were awarded. 22 GCE Business 9BS0 02
Examiner Comments This response gained 1 mark due to the fact that apart from node 1; the EST s had been correctly calculated. However all the other calculations were incorrect. GCE Business 9BS0 02 23
Question 2 (b) The majority of candidates revealed good understanding of capacity utilisation and performed the calculations correctly. However understanding of the implications of manufacturer A s lower capacity utilisation was mixed, with only a minority of candidates identifying the consequence of higher unit costs. A significant number of candidates revealed limited or no understanding of this topic. Examiner Comments Although the formula for capacity utilisation has not been stated, correct calculations for both manufacturers indicates implicit understanding. The analysis mark is awarded for the identification and explanation of a correct implication. Full marks awarded. 24 GCE Business 9BS0 02
Examiner Comments 3 marks awarded for the correct calculation of capacity utilisation for both manufacturers. However the implication was not explained correctly. GCE Business 9BS0 02 25
Question 2 (c) This proved to be a very accessible question. Candidates were knowledgeable about Innocent/Coca-Cola and often included additional relevant examples in their answers. Most candidates scored well on this question, the main discriminator was how well each argument was explained and the quality of the conclusion. 26 GCE Business 9BS0 02
Examiner Comments This response was awarded Level 4, 9 marks. The arguments both for and against Innocent Drinks raising finance through selling shares to Coca-Cola were well explained with consistent use of the context. The response was balanced and ended with a supported judgement. GCE Business 9BS0 02 27
Examiner Comments This response was considered to be Level 3, 6 marks. It includes relevant arguments both for and against, which are supported by the use of context. Each argument is reasonably well explained. Evaluation is evident in the second paragraph and in the conclusion. However the conclusion simply summarises previous points rather than making a judgement. 28 GCE Business 9BS0 02
Question 2 (d) This question discriminated well. Stronger candidates were able to identify selective positive and negative effects for AG Barr from the takeover, with impressive use of appropriate theories such as the Boston Matrix, Ansoff and economies/diseconomies of scale. Application generally tended to be weaker, with limited reference to the actual context of the drinks industry. GCE Business 9BS0 02 29
Examiner Comments This response was awarded Level 4, 11 marks. It identifies 2 relevant effects for AG Barr as a result of the takeover. Each effect is well analysed with consistent reference to the context. Both positive and negative consequences are identified and explained, providing evidence of balanced assessment. The conclusion is largely based upon the previous arguments and it makes a supported judgement. 30 GCE Business 9BS0 02
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Examiner Comments This response was awarded Level 3, 6 marks. It reveals good understanding of takeovers by identifying and explaining 2 relevant effects. However the analysis generally could have been stronger and a significant weakness was the lack of context. A counter argument for each effect is identified but not explained and the conclusion is superficial. 32 GCE Business 9BS0 02
Question 2 (e) Many candidates failed to answer this question fully, possibly because they had run out of time. Generally candidates understood the difference between a stakeholder and a shareholder and were able to explain their different expectations. Stronger candidates were able to identify and explain a range of stakeholders and relate them to the context of Unilever s Sustainable Living Plan. Likewise they also could identify and explain the importance of shareholder interests. Recommendations were based upon prior analysis and showed awareness of Unilever s strategy. Many candidates simply discussed the advantages and disadvantages of Unilever adopting an ethical policy with reference only to consumers. Although this approach was rewarded, it failed to reach Level 4, because the response was not wide ranging. Less able candidates tended to write limited answers that did little more than recognise the difference between stakeholders and shareholders. Often there was confused understanding or assertive comments regarding shareholders interests e.g. the notion that shareholders provide advice to senior managers and/or they are only interested in profit. GCE Business 9BS0 02 33
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Examiner Comments This response was considered to be Level 4, 17 marks. It reveals good understanding of both stakeholder and shareholder interests. The advantages and disadvantages of each approach are well explained with consistent reference to the context of Unilever. The answer is balanced and wide ranging, due to the fact that the interests of more than one stakeholder group is considered. The conclusion is based upon the previous arguments and makes a recommendation that considers both the short and long term implications. The response is concise and consistently focused. GCE Business 9BS0 02 35
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Examiner Comments This response was awarded Level 2, 7 marks. It includes understanding of both stakeholders and shareholders, as well as relevant points from the extract. Some of the points are explained, but generally there are gaps in the chain of analysis and/or it is based upon assertion. The answer lacks breadth, due to the fact that the only stakeholder identified was consumers. The conclusion does provide a recommendation, but this is not well supported by the previous arguments. Overall this was considered to be a superficial response. GCE Business 9BS0 02 37
Paper summary Based on their performance on this paper, candidates are offered the following advice: A key lesson for centres is the importance of emphasising to candidates that selective arguments that are well explained, with appropriate use of theory and supported by consistent use of context will always be well rewarded. Conclusions/recommendations based upon prior analysis and application should enable candidates to gain Level 4 marks where appropriate. There were certain topics where some candidates lacked understanding; specifically these were the acid test ratio, critical path analysis and capacity utilisation. Assess questions will always require candidates to look at both sides of an argument and write a supported conclusion. Quality rather than quantity selective arguments that are well developed will always be rewarded higher than identifying several arguments with limited explanation. It is not necessary to write lengthy answers to 20 mark questions. The space provided in the answer booklet should be sufficient. 38 GCE Business 9BS0 02
Grade Boundaries Grade boundaries for this, and all other papers, can be found on the website on this link: http://www.edexcel.com/iwantto/pages/grade-boundaries.aspx GCE Business 9BS0 02 39
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